How the scheme works
The scheme pays a long service payment to eligible registered workers who have worked in the building and construction industry in NSW during the time of their registration and where this time is recorded in the scheme.
Eligible workers in the building and construction industry in NSW are required to be registered in the scheme by their employers.
Contractors may register in the scheme of their own accord. While employers would normally register a worker new to their organisation, eligible workers may register themselves to ensure they obtain the benefits of the scheme if they are not certain that their employer has registered them.
Record your time in the industry
The time worked in the NSW building and construction industry is recorded from notifications supplied by employers at the end of each financial year or when workers leave their jobs.
Contractors must supply details of their taxable earnings each financial year through a tax agent and this is used to calculate an equivalent time worked in the NSW building and construction industry.
Workers who carry out eligible building and construction work part-time or casually can record the time they work in the building and construction industry in the scheme. The time worked is determined from notifications supplied by their employers at the end of each financial year or when workers leave their jobs.
Long service payment amount
The scheme pays the equivalent of 8.67 weeks' pay for 10 years of recorded service. The amount of payment is based on award rates of pay or the rate of pay under a registered enterprise bargaining agreement. Benefits may be payable for workers with less than 10 years of recorded service in certain cases and are calculated on a pro rata basis.
How employers benefit from the scheme
Employers of eligible workers who are registered with the scheme who pay a long service benefit to a worker under the NSW Long Service Leave Act 1955 can be paid a claim for part or all of that benefit paid.
The claim is calculated for that portion of the benefit paid by the employer where the time spent working in the industry by the worker has been recorded by the Corporation.
To obtain this benefit the employer must also be registered with the Corporation as an employer in the NSW building and construction industry.
Workers who can register
Only persons doing building and construction work in the building and construction industry in NSW may register with the scheme. The Building and Construction Industry Long Service Payments Act 1986 defines both building and construction work and the building and construction industry.
Work on Commonwealth places
As Commonwealth places fall under the jurisdiction of the Commonwealth Government, work conducted on Commonwealth places cannot be credited under the NSW Building and Construction Industry Long Service Payments Act, administered by the Long Service Corporation (LSC). We are working with the Commonwealth Government to resolve this.
LSC is actively exploring avenues to provide support to workers on these sites as we understand and recognise the impact this has on workers.
Whilst work on Commonwealth places does not currently count towards portable long service, the Corporation is maintaining records of this work to benefit you when we are able to count it. In this regard, all workers should register in the LSC portable long service scheme so we can have your service recorded.
As efforts continue to address this issue, we will share additional details on the assistance we can offer on our news page.
Funding of the scheme
The levy is paid by the applicant of the building approval or the person the work is being completed for. A contractor generally pays the levy if building work is done on behalf of the Crown. Differences apply if works are done by a body established by an act of parliament such as a Council.
Contact us for more information or read more about the levy.